Web Hosting Talk : Web Hosting Main Forums : Web Hosting : Prices with decimals

[nibb]

We all see this and not just in the hosting industry. Prices like 7.95$ or 5.99$ or 1.90$. They mean just 8$, 6$ and 2$ on the excel sheet plus come cents more or less.

But for the customer he prefers to see the first digit only, just the 7 instead that he know hes is almost paying 8$.
Now, do people actually think this has some effect in the customer?

Do you think a price like 7.95$ actually looks cheaper then just a straight 8$ for example.
I know then when i look at such an price i just round it directly to 8$ so i that trick doest work on me and im sure it doesnt in allot of other people. When i shop online i just calculated all the products rounded directly so i get a higher price of what im paying. On the checkout i save just a little cents but i know i paid basically an exact number.

Now my discussion was to be able to know in what benefits and or hurts to use those prices for a company. Do people prefer decimal prices or do they just prefer a straight price. And why instead of 7.95$ people dont just use 8.20$. The price is basically the same, 8$ for the viewer or shopper but you are still making 20 cents more that the customer doesn't, care instead of actually losing 5 cents in each transaction.

So joe, what do you think?

[allportpc]

Its a marketing thing. I do the 7.99 because people see 7. My Realtor taught me that when she listed my house (5 years ago) for 69,900 instead of 70,000. Gu3ess what, it sold in 8 hours. She said people who are approved for 70,000 want to buy less because of lower payments. Thats a big amount of money compared to hosting but it is still marketing. Every cent saved is important to some customers. theres just something about that 99 or 95 cent. I think it really matters when you charge taxes becuase you could potentially even it out to a round number.

[Orien]

From what I've seen, $7.95 would appear to be more appealing than $8. It's just how our minds work in a lot of cases.

[websplash]

I agree - i think its just a psychological thing, i would be more tempted to buy the $7.95 then the $8 because its the first digit that most people pay attention too

[MGCJerry]

I read the first number, then I go beyond the decimal.

So when I see my hosts invoice for $12.95, I know $13 is leaving my account. I round up.

[HostRefugee-Vince]

There are people out there "like my wife" who round down. She tells me something is only $7.00, and of course it's $7.99.

[MikeDVB]

Originally Posted by HostRefugee-Vince

There are people out there "like my wife" who round down. She tells me something is only $7.00, and of course it's $7.99.

Yes, that's probably the easiest way to do it because no math is involved.

You see $7.XX and no math is involved.

[nibb]

Originally Posted by HostRefugee-Vince

There are people out there "like my wife" who round down. She tells me something is only $7.00, and of course it's $7.99.

Ja, ja thats funny. I do the same but round it directly to 8$.

Now that we all agree here goes second question.

What has more impact, 7.95 or 7.99. I see most people prefer 95 instead of 99, but inst the effect actually the same? To maintain the first number smaller...

I suppose its somehow valid since most people see a charge on their statement, i suppose the 00 makes something look more expensive, specially if you have allot of charges you just make a quick flip to the statements. Imagine looking at all with ceros like 8.00$ you will double check that just to be sure its not 800$. And about the math thing that is also true, banks do that all the time because people just dont want to take the time to make the calculation.

[ldcdc]

Do you think a price like 7.95$ actually looks cheaper then just a straight 8$ for example.

Funnily enough, I round them up in my mind, but somehow, at some level, I retain a feeling that "it's not really a full $8".

[Orien]

Originally Posted by ldcdc

Funnily enough, I round them up in my mind, but somehow, at some level, I retain a feeling that "it's not really a full $8".

Well... it isn't. You save 5 cents.

[nibb]

Originally Posted by ldcdc

Funnily enough, I round them up in my mind, but somehow, at some level, I retain a feeling that "it's not really a full $8".

I second that and the same happens to me. That is because it actually is not 8$. Even if its a penny away nobody could argue that is costs 8$, a sales persons would correct you if you aks for the 8$ product. You could say almost 8$ but not 8$ because its 7.95$. Stupid isnt it?, I know but math is always right.

Its incredible how we humans actually fall for such tricks. Do you think a company could be pointed out as tricky or not clear prices for this? Because the intention is there, to make the product look cheaper then it actually is. Someone people would argue that this are not clear prices.

[Orien]

The prices are clear. Our perception of them just varies, but I wouldn't say the companies are trying to trick customers.

[sammy659]

most of the people will think of "7" and not of "8" - because the visual stimulus is so strong. that's why everyone uses them...

[UH-Bobby]

Originally Posted by Orien

The prices are clear. Our perception of them just varies, but I wouldn't say the companies are trying to trick customers.

Yeah, there's no trick involved. If it says 7.95, you'll pay 7.95. Like Orien said, it's all about perception. Mainly, this is just psychological, but some people do care about cents. Sometimes, people see the 7, and don't care about the cents. Is this a bad practice of hosts? I truly don't think so. Because, you pay what is shown. You can perceive it to be whatever you want it to be.

Edit: What you do you think about the pricing structure of gas? It's the same way. When you see gas at 3.59 or whatever the price, you're really paying 3.599 or X.XX9. There's always that 9 in there.

[MikeDVB]

Originally Posted by UH-Bobby

Yeah, there's no trick involved. If it says 7.95, you'll pay 7.95. Like Orien said, it's all about perception. Mainly, this is just psychological, but some people do care about cents. Sometimes, people see the 7, and don't care about the cents. Is this a bad practice of hosts? I truly don't think so. Because, you pay what is shown. You can perceive it to be whatever you want it to be.

Edit: What you do you think about the pricing structure of gas? It's the same way. When you see gas at 3.59 or whatever the price, you're really paying 3.599 or X.XX9. There's always that 9 in there.

It's done in just about every aspect of sales, go to your local supermarket and see if you find anything not "on sale" that isn't priced at X.9X or X.8X.